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New York gaming regulators have moved forward proposed rules that would limit how mobile sportsbooks, affiliates, and vendors use AI and other automated tools to target bettors.
The New York State Gaming Commission unanimously advanced a revised proposal that would restrict the use of AI, machine learning, algorithmic profiling, and automated decision-making systems to personalize gambling promotions and betting recommendations. A separate proposal would require operators to identify customers who may be showing signs of problem gambling and contact them about potential risks.
Neither measure is final yet. Both proposals will go through further public comment and commission review, and no final vote date has been announced.
Proposed AI rules would limit personalized betting prompts
Under the revised proposal, operators would face restrictions on using customer data to tailor promotions, bonuses, odds, betting limits, messages, or product recommendations.
The rules would also limit sportsbooks from suggesting specific wagers, bet types, or betting amounts to individual users. In addition, the proposal would prohibit automated tools from being used to encourage higher spending, engagement, or revenue through personalized promotions.
The proposal includes some exceptions. Customers who provide consent could fall outside some restrictions, and pari-mutuel horse racing apps that suggest wagers could qualify for an exemption if users first opt in.
The commission instructed staff to seek further expert input on AI and gaming before the rules return for more discussion.
Separate proposal targets problem gambling warning signs
Regulators also advanced a separate responsible gambling measure aimed at identifying customers who may be at risk.
That proposal would require sportsbook operators to flag possible warning signs and assign someone to contact those customers about gambling-related risks. The revised language identifies recent bankruptcies, judgments, and related debt indicators as possible signs of gambling harm.
Commission Chairman Brian O’Dwyer also said operators should work together to close cross-operator gaps, arguing that a customer restricted by one sportsbook should not be able to continue betting through another.
“The industry is on notice by me and this commission that they need to solve this problem,” O’Dwyer said.
What New York bettors should watch next
New York currently has nine licensed mobile sportsbook operators, and mobile wagering gross gaming revenue is taxed at 51%.
For now, these proposals do not change the rules for bettors or operators. The next key step is the public comment and review process, which could further reshape how sportsbooks use customer data and how they handle responsible gambling outreach in New York’s regulated market.
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Source: As reported by news.worldcasinodirectory.com.
